Swedbank AB (FRY) Q3 2026 Earnings Report

The call was strongly positive overall. Swedbank reported higher profit, 15.6% return on equity, growth in net interest and commission income, strong lending and savings activity, solid credit quality, and meaningful progress on IRB approvals and restructuring. The main challenges were extraordinary costs, higher funding costs, lower other income, isolated corporate credit impairments, and increased regulatory capital requirements, but management maintained its guidance and described the loan portfolio and strategic outlook as resilient.

Guidance included global growth expected to reach 3% this year and to increase somewhat in 2027, GDP growth of Sweden, Estonia, Latvia, and Lithuania of 2%-3% this year, a 2026 cost guidance of SEK 27.5 billion excluding extraordinary costs and FX effects, with the full year FX effect estimated to add approximately SEK 250 million, elevated investment levels in 2027 with synergies expected to offset the additional investments, and by the end of 2028 the restructuring program expected to be fully implemented and deliver a lower annual cost base of approximately SEK 1 billion. Swedbank targets a capital buffer range between 100 basis points and 300 basis points, the middle of it, i.e. the 200 basis points, has a dividend policy of 60%-70%, and expects the fourth-quarter effects to have a net positive impact on the buffer of around 75 basis points, approximately 8 basis points-10 basis points of CET1 buffer benefit in the first quarter, and a CET1 buffer benefit of approximately 60 basis points over the coming two quarters. The target is a sustainable return of equity of at least 15%, supported by a cost to income ratio of 0.4 or below.